Escape From
Making The Ten Biggest Blunders You Can Make When Buying a Home
Although most people can purchase a home now or in a few months with little
help, most people fear talking to a real estate agent or mortgage loan officer.
This report is for people who want a home, that have good income, and would
like to retire debt free and wealthy someday. This report is a compilation of
years of experience in the real estate and real estate finance industries. Premier
Lending Group has helped many people just like you purchase the homes of their
dreams, reduce their monthly costs, and restructure the way they pay their bills
and spend their hard earned dollars.
We believe in educating our clients about all of their choices. That means the
positive and possible negative aspects of each loan. The reason we are in this
business is to help people achieve their dreams of owning a home. We think you
should ask as many questions as you want and we encourage you to request all
the information we offer as a service to our clients.
Why Spend $2100 A Month On Rent When You Can Own A $350,000 Home?
Yes, this is possible. Homeownership has tremendous tax advantages and your
home will most likely go up in value. So, a home you purchase today for $350,000
and sell for $400,000 in 5 years may cost you as little as $2100.00 per month.
You will have the ability to write off the mortgage interest and the property
taxes on your annual income tax. Also, because the house increases in value
you will earn money simply by being a homeowner. Over the years, we have heard
many buyers say their accountant suggested they buy a house. After owning a
home for a year or two they realize why. Owning a home provides you with one
of the best tax advantages available.
Before we tell you the many ways weI can help you buy a home with little or
no money down, please read ""The Ten Biggest Blunders You Can Make in Buying
A Home"". It has been our experience that most banks, mortgage companies, credit
unions, real estate agents, and builders will avoid the topics below.
Our goal at Premier Lending Group is to educate you as much as possible. We
originate mortgages by educating you and allowing you to make an educated decision
on which loan best fits your needs.
The Ten Biggest Blunders You Can Make When Buying A Home 1. Losing
Money With Lower Interest Rates. Some loans have very attractive interest
rates (also known as teaser rates) but you may be hit with higher upfront charges.
Points and or origination fees are the most common ways to lower the rate and
charge up front costs. When searching for a mortgage, ask the lender if they
are charging points or origination fees. Points and origination fees are calculated
as a percentage of the loan amount. See example below.
$280,000 Mortgage
1 Point = 1% of the loan amount = $2,800 paid at closing
2 Points = 2% of the loan amount = $5,600 paid at closing
Beware of Adjustable Rate Mortgages (ARM's) and Balloon Mortgages. ARM
rates will adjust depending on the loan. The ARM rates may adjust as often as
every 6 months, but in most case they adjust after 1, 2, 3, and 5 years. Those
rates are likely to go up when they adjust. The Balloon Mortgage requires the
borrower to pay the loan off when it matures, usually between 2-7 years.
There are many lending tactics to sell the borrower on a low rate and then charge
outrageous fees and costs. Don't fall into the ""bait and switch"" lending ploy.
2. Getting a Loan From Your Real Estate Agent or the Mortgage Company in
Your Real Estate Agent's Office May Not Save You Any Money.
Many real estate companies and individual real estate agents are now offering
mortgage loans as well as real estate services. It has been our experience that
some Realtors are not educated enough and do not have the experience to originate
mortgage loans. They spread themselves too thin and it ultimately hurts the
borrower. Realtors sell Real Estate and Mortgage Companies originate mortgage
loans.
Also, using a mortgage company that is affiliated with a real estate company
may cost you more. It may be slightly more convenient, but it also can be a
lot more expensive. Competition drives rates and costs down. In the controlled
business arrangement with a Realtor or a Realtor owned Mortgage Company, you
lose that competition.
3. Buying a Home from the Listing Agent May Not Be In Your Best Interest.
The listing agent is the person who makes an agreement with the seller to sell
the home. The seller agrees to pay the listing agent a commission for marketing
and selling their home. The listing agent is working for the seller and will
consider the sellers needs before the buyers. Having your own agent (selling
agent) does not cost you any more money. The seller will pay the same commission
for the sale if you do or do not have your own agent. Having your own agent
allows there to be someone in your corner. A selling agent can help you find
a house, confirm the value, help with inspections and financing, and answer
any other questions you may have.
4. Buying FHA, VA, or IRS Repossessed Homes May Be A Mistake.
We are not against purchasing a repossessed or discounted property. In many
markets, especially those that are having financial trouble, a repossessed home
may make good sense.
However, many VA, FHA, and IRS repossessed homes are sold with virtually no
warranty. Also, the borrower may be limited on how much they can inspect the
property prior to purchasing it. Often times these houses are in need of repair
and need work. Not being able to thoroughly inspect the property puts the purchaser
in a risky position.
There are some bargain properties but for the most part investors who have the
""know how"" purchase them. Loans with zero or little down payment typically will
have higher property standards.
Keep in mind that purchasing this type of property requires bidding for it.
The people you would be bidding against rehab houses for a living, so you may
be at a disadvantage from an experience stand point. In addition, most homes
that are for sale under these conditions require a substantial up front deposit
that may not be refundable should your loan not close within a specific period
of time.
5. Bad Credit Stays On your Record for 7 Years or More.
This is true, but in most cases PLG loans are evaluated based on the last 12-24
months. PLG may totally disregard ANY adverse credit issues prior to that 12-24
month window. Most of the loans with zero or no money down cater to those who
need leniency in the area of credit.
Also, having not re-established credit doesn't mean you cannot get a loan. PLG
has other means to establish credit history.
6. Credit Counseling May Harm Your Credit Rating.
In certain instances, consumer credit counseling services may be a wise decision.
These services can provide education and help with debt problems. The Credit
Counseling Company will set a budget for the client based on their income and
how much debt there is to pay off.
The problem comes when counseling companies do not meet the client's monthly
obligations with their creditors. As a result, they begin to have late payments
on their credit report. In other words, they may not meet the creditor's minimum
monthly payment requirements because the budget calls for a lesser payment.
Overall, credit counseling is an effective tool to reduce debt as long as they
meet the client's due dates and the minimum monthly payment.
7. Getting Your Mortgage Loan from the Internet May Cost You.
It could be a costly mistake if you get a loan online from a company that only
services loans online and does not have an office or employees that can assist
you. PLG's corporate headquarters allows for clients to come in to our office
and we can keep up to date on the different rules and guidelines for different
states, cities, and even counties. Getting a loan online can also take longer
because they will not have service companies (title companies, appraisers and
others) to do the job in a timely manner.
Mortgage loans are complex and may not make sense to purchase online. This is
especially true if the borrower is looking for maximum service and care.
8. Working with a Mortgage Lender Who Only Has One Product To Sell May Not
Meet Your Specific Needs.
For the fifteen percent (15%) or so of a bank's customers that are ""Private
Bank Clients"" (big bucks, big money for the bank), the bank may have the best
deal for you. If you don't fall into that category, we suggest talking with
a PLG loan consultant who has the knowledge and loan programs to meet your needs.
Most lenders only have one source of funds. This type of lender is forced to
""fit"" the customer into a prefabricated loan program. They only have one or
two different ways to handle the many different loan situations that occur.
PLG deals with hundreds of lenders and can offer you many different loan programs
to fit your needs.
9. Paying Upfront Costs Before You Know Exactly What Type Of Loan You Are
Being Offered.
It is common for lenders to collect for the appraisal and credit report before
they even look at your request. They do this to keep you loyal to them. Be very
careful about what you pay for and when you pay it.
We do not charge our customers anything during the initial loan process. They
will pay for the services of the vendors we use at the closing.
10. Get A Pre-Approval From Your Mortgage Company Before You Start Shopping
For A Home.
Having a pre-approved loan can be very important. A pre-approval has two major
benefits. First, you will have piece of mind before you get serious about buying
a home. You will know how much of a house you can afford, what the payments
will be, and how much of a down payment is needed. Secondly, having a pre-approval
may give the borrower bargaining power when negotiating a price for the home.
For example, if three buyers are looking at the same house, the seller will
probably look closer at the buyer who has been pre-approved. Also, getting pre-approved
may allow the borrower to get a better price for the property.
Get pre-approved. It could save you a lot of time and money.
You Might Have Some Questions. Here are some of the most common questions
asked by first time homebuyers.
How Do I Qualify?
The first thing you do is fill out our online application or call our office
at 1.866.501.LEND (5363). The more information you give us in the beginning,
the more accurate our response will be. Without question, the first step is
to get pre-qualified.
How Long Does It Take?
We can have your qualification completed in 24 hours. In most cases we will
know where you stand and what it will take to get you where you want to be.
The biggest delay in most cases is usually the applicant: procrastination, laziness,
failing to get the necessary documentation together...these are the biggest
delays in the process.
How Much Does It Cost?
Zero. The pre-qualification is a free service we offer to anyone interested
in purchasing or refinancing a home.
What are the Interest Rates? Interest rates change on a daily basis. Our goal
is to get you the cheapest mortgage loan possible, a loan that will save you
monthly as well as having low costs to close.
Once you become a homeowner, we can help you lower your rate in the future if
interest rates drop. In many cases, we are able to get lower rates for those
borrowers who can barely qualify. In ALL cases, we will work to get you our
absolute best possible program that comfortably fits YOUR needs.
There will never be any upfront fee until you agree to the terms of the loan
and you'll never pay PLG a dime if we can't get you a loan. We only get paid
if we produce. That's why we're on your side. All our charges are shown on the
Good Faith Estimate you will receive at application. Once we have the facts
surrounding your situation, we'll know the costs and so will you. There are
never any surprises!!! We promise.
We realize this is a lot of information to receive at once.
We hope you can see just how many choices and options you have and how buying
a home is the biggest investment of most people's lives. We recommend that you
do your homework and get a mortgage professional you can trust.
Again, our goal is to educate each and every client we speak with. If a client
is not able to purchase a house now, we develop a plan so they can buy in the
future. We can offer advice to help repair damaged credit.
Please take a serious look at what we can offer you. A FREE CONSULTATION
TO FIND OUT WHAT TYPE OF LOAN IS THE BEST FOR YOU WHEN PURCHASING A HOME!
This is a service that is FREE!
The consultations are typically done by phone and take about 10-20 minutes.
Some people feel more comfortable meeting in person. we also have hours available
on the weekends and evenings. We can't promise that we can help everyone, but
if you'll take a moment to look at the Online Application or simply give us
a call, you will see how easy this process actually is. Once we review your
situation, we can instantly give you an answer.
Congratulations on taking the first step towards owing a home of your own!
Why do we
offer this report free of charge?
The ideas contained in this report took us years to learn and formulate. We
are offering this free of charge because we want to be your mortgage advisor.
We offer more than simply a loan, we'll personally advise you on how to use
and apply the principles contained in this report. Worried that you can't remember
all of what is contained here or do you have more questions? Call us and we'll
provide you with the highest level of service. We want to earn your business.
Premier Lending Group L.L.C.
approved@premierlend.net
1.866.501.LEND (5363)